India - Income Tax Act 2010 - Saarc

1.439 CH. VIA - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80HHE(i) eighty per cent of such profits for an assessment year beginning onthe 1st day of April, 2001;41[(ii) seventy per cent thereof for an assessment year beginning on the 1stday of April, 2002;(iii) fifty per cent thereof for an assessment year beginning on the 1st dayof April, 2003;(iv) thirty per cent thereof for an assessment year beginning on the 1st dayof April, 2004,]and no deduction shall be allowed in respect of the assessment year beginningon the 1st day of April, 2005 and any subsequent assessment year.](2) The deduction specified in sub-section (1) shall be allowed only if theconsideration in respect of the computer software referred to in that sub-sectionis received in, or brought into, India by the assessee in convertible foreignexchange, within a period of six months from the end of the previous yearor, 42 [within such further period as the competent authority may allow inthis behalf].Explanation 43 [1].—The said consideration shall be deemed to have been receivedin India where it is credited to a separate account maintained for thepurpose by the assessee with any bank outside India with the approval of theReserve Bank of India.43[Explanation 2.—For the purposes of this sub-section, the expression “competentauthority” means the Reserve Bank of India or such other authority as isauthorised under any law for the time being in force for regulating payments anddealings in foreign exchange.](3) For the purposes of sub-section (1), profits derived from the business referredto in that sub-section shall be the amount which bears to the profits of thebusiness, the same proportion as the export turnover bears to the total turnoverof the business carried on by the assessee.44[(3A) For the purposes of sub-section (1A), profits derived by a supportingsoftware developer shall be,—(i) in a case where the business carried on by the supporting softwaredeveloper consists exclusively of developing and selling of computer41. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. Prior to their substitution, clauses (ii),(iii) and (iv) read as under :“(ii) sixty per cent of such profits for an assessment year beginning on the 1st day ofApril, 2002;(iii) forty per cent of such profits for an assessment year beginning on the 1st day ofApril, 2003;(iv) twenty per cent of such profits for an assessment year beginning on the 1st day ofApril, 2004,”42. Substituted for the portion beginning with the words “where the Commissioner” andending with the words “may allow in this behalf” by the Finance Act, 1999, w.e.f. 1-6-1999.Prior to substitution, the said portion was inserted by the Finance (No. 2) Act, 1991, w.e.f.1-4-1991.43. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.44. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.